Friday, October 10, 2014

Norilsk sinks as nickel demand slumps

The American cache receipts of the world’s largest nickel producers stepped down to 1.6 percent, on Wednesday to 17.23 dollars, due to the decline in the price of nickel, which is the most important metal in the process of treating steel for its production. 20 percent of the stock of the company has been lost, since the month of July, first time after lowest in five months, which made the decline stand apart as one of the benchmarks of Micex Index when it tumbled down followed by the annexation by the President Valdimer, regarding Crimea in the month of March.

Last month, during the slowdown in the Chinese economy, nickel was forced to0 enter a bear market. As China is the biggest consumer of nickel, the stockpiles raised to a record. On October 7th, the International Monetary Fund, had to cut off their forecast, as the decline in demand is expected to grow further. After being inspired by Russia’s role in the war of Ukraine, Norilsk encouraged the sell-off in the Russian equities, which is promoting 46 percent, which is almost near to a three year high after months of shortage in the nickel supply.